Donald Trump's shadow loomed large over the World Economic Forum (WEF) in Davos this week, despite his physical absence. His protectionist trade policies and unconventional approach to international relations continued to be a major topic of discussion among global leaders and business executives.

Trump's previous virtual appearance at Davos last year, just two days after his inauguration, left a lasting impression. His remarks about territorial ambitions and trade tariffs caused considerable unease among European executives. He proposed tariffs that could potentially raise "trillions" for the US, urging companies to build factories in the US or face significant financial consequences.

The potential impact of these policies on global markets is substantial. Analysts estimate that increased tariffs could disrupt supply chains and raise costs for businesses, potentially leading to slower economic growth. Companies that rely heavily on international trade, particularly those importing goods into the US, face the greatest risk. The threat of tariffs has already prompted some companies to reconsider their investment strategies and explore relocating production facilities to the US.

Trump's approach to trade represents a significant departure from established norms. His focus on bilateral deals and willingness to challenge multilateral institutions has created uncertainty in the global business environment. This uncertainty is particularly concerning for multinational corporations that operate across borders and rely on stable trade relationships.

Looking ahead, the future of global trade remains uncertain. While some businesses may adapt to the new environment by shifting production or renegotiating trade agreements, others may struggle to compete. The long-term impact of Trump's policies on the global economy will depend on a variety of factors, including the response of other countries and the evolution of trade relations.